General Announcement::News Release: BOC, CFETS and SGX sign strategic cooperation agreement on CFETS-BOC Bond Indices
Issuer & Securities
SINGAPORE EXCHANGE LIMITED
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Date &Time of Broadcast
Announcement Sub Title
News Release: BOC, CFETS and SGX sign strategic cooperation agreement on CFETS-BOC Bond Indices
Submitted By (Co./ Ind. Name)
Senior Associate, Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
- SGX will be the first exchange to distribute the Bond Indices outside of China
- The three parties will explore the feasibility of disseminating the Bond Indices via SGX s market data distribution network and developing tradable products based on the Indices
Bank of China Limited (BOC), China Foreign Exchange Trade System & National Interbank Funding Center (CFETS) and Singapore Exchange (SGX) today announced that they have signed a strategic cooperation agreement to jointly promote CFETS-BOC Traded Bond Index and its sub-indices (Bond Indices) outside of China to international investors, as well as to explore the feasibility of developing products based on the Bond Indices.
SGX will be the first exchange to distribute the Bond Indices outside of China, by publishing the Bond Indices on SGX's website (http://www.sgx.com/indices/cfets-boc-traded-bond-indices). The three parties will jointly organise educational sessions and publicity activities to promote the development and increase investor awareness of the Bond Indices.
As part of the collaboration agreement, they will also explore disseminating the Bond Indices via SGX's market data distribution network, and using the Bond Indices as a component in the indices calculated by SGX.
In addition, they will explore the feasibility of developing financial products using the Bond Indices as the underlying, to be listed on SGX.
CFETS and BOC jointly developed and launched the Bond Indices, which are based on the transaction characteristics of various types of bonds and represent top liquidity in the current China Interbank Bond Market (CIBM). These indices serve to provide an effective price-level indicator of the CIBM for domestic and foreign investors, who wish to follow CIBM movements for performance benchmarking and portfolio construction and management.
Ms Zhen Mei, General Manager and Head of Global Markets, BOC, said, "Through close collaboration between SGX, CFETS and Bank of China, we are able to launch the CFETS-BOC Bond Indices on SGX, an exchange with wide-reaching influence. The CFETS-BOC Bond Indices better reflect the market trends and flows of a comprehensive range of China onshore bond products. We hope that international investors will utilise the indices and their related products to participate in investment opportunities and benefit from the opening up of the China bond market."
Ms Zhang Yi, President of CFETS, said, "CFETS-BOC Bond Indices well capture the characteristics of China's bond market, providing investors with accurate and reliable observation windows and reference for tracking portfolio performance. The publication of indices on SGX authorised by CFETS and Bank of China will help foster publicity, encourage wider use of the indices and investment in related products among overseas investors, and further promote the opening up of China's bond market."
Loh Boon Chye, Chief Executive Officer of SGX, said, "This strategic cooperation marks a further strengthening of financial ties between Singapore and China. As China forges ahead with the opening up of its financial markets, SGX is well-placed to raise the visibility of the Bond Indices and facilitate greater global institutional investor interest. The distribution of the Indices through SGX's network will also familiarise international investors with Chinese domestic markets. We look forward to closer collaboration between the three organisations and the two countries, so as to enhance cross-border opportunities benefitting both markets."
1 CFETS and BOC jointly developed and launched the CFETS-BOC Traded Bond Index, which currently comprises several sub-indices, namely, the CFETS-BOC Traded Treasury Bond Index, CFETS-BOC Traded Policy Financial Bond Index, CFETS-BOC Traded High Credit Rating Negotiated Certificates of Deposit Index, CFETS-BOC Traded High Credit Rating Bond Index, CFETS-BOC 1-3 Year Traded High Credit Rating Bond Index, and CFETS-BOC 3-5 Year Traded High Credit Rating Bond Index.
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